Case Study 5 — Peak Shaving
Reducing the Cost of Peak Electricity Demand
The Challenge
Many commercial electricity customers pay as much for their peak demand as they do for the energy they consume. Just a few hours — sometimes a single 15-minute window — can set the demand charge for an entire billing period.
The Numbers
-
Demand charges typically make up 30–70% of a commercial electricity bill (NREL).
-
Peak demand is often set by the highest 15-minute average of usage in the month.
-
For manufacturers, cold storage facilities and other equipment-heavy operations, demand charges commonly sit at the higher end of that range.
Why Existing Solutions Fall Short
Batteries can shave short peaks but are costly to size for sustained or repeated demand events.
Operational load-shedding disrupts production.
Efficiency measures reduce baseline consumption but don't address the demand spikes that actually drive the charges.
iQ-LOOP's Solution
iQ-LOOP captures low-cost off-peak electricity and converts it into stored aluminium energy inventory, releasing it as heat, cooling or power during peak periods to cut demand charges without interrupting operations.
Example Reference Project
On-site LOOP installation sized to a facility's peak demand profile, discharging during its highest-cost billing windows.
Modelled Impact
-
Reduced peak demand
-
Lower demand charges
-
Deferred grid upgrades
-
More predictable electricity costs
-
Improved resilience
Why Now?
Demand charges are a growing share of commercial electricity bills as grids tighten, and load growth from electrification is pushing peaks higher still.
Vision for the Future
Reduce the Peak.
Protect Future Energy Costs.
Keep the Business Running.